$A lower after sharp euro sell off

The Australian dollar was slightly lower after a sharp sell off in the euro on Friday night (AEST) sparked by further Greek sovereign debt worries.

At 7am AEST on Monday, the it was trading at $US1.0642, down from $US1.0659 on Friday.

Since 5pm on Friday, the local unit has traded between $US1.0610 and $US1.0711.

On Friday night, Fitch Ratings Agency slashed Greece's credit ratings by three notches to B+ due to the massive challenges of correcting the country's finances and Norway suspended the pay of a $US42 million grant to Greece.

Bank of New Zealand currency strategist Mike Jones said the Australian dollar proved resilient amid the sell off in the euro and the negative news on Friday night.

"There was all manner of negative news driving the currency lower and that spurred a bout of US dollar strength," Mr Jones said from Wellington.

"Given that backdrop, it was actually a pretty impressive performance from the Australian dollar to essentially hold onto its gains for the week.

"I think that reflects a bounce back in commodity prices."

Mr Jones said in the absence of any significant local economic data, the Australian dollar was likely to be driven by offshore events.

He expects the Australian dollar to trade in a range between $US1.0610 and $US1.0690 on Monday.